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Consider the following actual (At) and forecast (Ft) demand levels for a commercial multiline telephone at Office Max:
TIME PERIOD, t
ACTUAL DEMAND, At
FORECAST DEMAND FT
1
50
2
42
40
3
56
48
4
46
5
The first forecast, F1, was derived by observing A1 and setting F1 equal to A1. Subsequent forecast averages were derived by exponential smoothing. Using the exponential smoothing method, find the forecast for time period 5. (Hint: You need to first find the smoothing constant, a.)
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